Home Mortgage Refinance Tips
Whether you are in the market to purchase a home or you are planning a mortgage refinance, you will want to know how to get low cost financing. Both mortgage refinancing and new home loans can vary greatly in cost, so here are some tips on finding the low cost financing.
Tip 1…
As with any other type of business, banks are competing for each loan customer out there. This is good for you because it means that they will offer low rates and other incentives in order to get your business. One of the best ways to get low cost financing is to truly shop around. As you do this, you should let the loan officers you are working with know that you are looking at other loan products and other lenders. It may take a little work, but you will find that even a slightly lower interest rate can compute to huge savings over the 30 years of the typical home loan.
Tip 2…
Another way to get the best low cost financing when you are looking for a mortgage refinance or new home loan is to have a good credit history and be able to show that you have some assets. Having the documentation that verifies your income and employment history will also help with this process.
Tip 4…
Knowing that you will need bank statements, paycheck stubs, credit reports and even income tax returns can help you collect everything and keep it in order so that you can be prepared to answer all the questions the loan officer will ask in order to qualify you for the loan.
Tip 5…
If your credit is not where you want it to be, you should not despair. There are bad credit mortgages that are available today with reasonably low cost financing. Banks are competing for every customer they can get, so even though your interest rates won’t be as low as with conventional loans, they won’t be much higher.
Tip 6…
Be sure that you are comparing apples to apples by comparing the APR that the different lenders quote. Don’t try to compare one lender’s simple interest rate with another lender’s APR. The APR takes into account the closing costs, points, and fees, so it is a much better indicator of the actual cost of the loan.
Tip 7…
Remember to check with your current lender if you are thinking about mortgage refinancing. They may be able to do a streamlined loan that doesn’t include any closing costs because they want to keep you as a customer. Now is a great time to get a mortgage refinance or a home loan because interest rates are low and competition is high.
